today, seven oil executives come to washington to meet with energy secretary granholm. interesting moves in the 10-year treasury and in oil. elon musk is out with a stark assessment of his factories and how much it costs to keep the lights on in the supply chain disrupted world it is thursday, june 23rd, 2022. the days are getting shorter "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm rebecca quick. along with joe kernen and andrew ross sorkin. yay. everybody back together. >> nice to see everybody >> spitballs.

>> we could throw. i would miss let's look at the equities you will see things are looking in the glreen for the dow indicated up by 18 points. s&p up 9 nasdaq up 78 it was mixed earlier and when you looked earlier than that we were down more significantly. >> i have to be careful. >> you don't drop the phone? >> exactly >> watches thesing these thingst now. it does come after a day of big swings futures were down sharply at this time yesterday. things turned around and spent much of the session in the green before closing lower it was slightly lower. s&p down 5 points. nasdaq down 16 dow off 47 points. a slight decline you may as well call it a win after yesterday. if you are watching treasury

yields, the 10-year treasury is down 3.155%. after up around 3.4% coming back. >> oil is near 100. >> that's where we are going next let's talk gas prices. they are easing back from the record highs according to aaa. national average for a gallon of gas is $4.94 it is down from 22 states just a week ago yesterday, president biden's pro p proposal of the gasol tax holidy i want -- oh, i think we will show biden talking about that right now? let's show him. >> it's a tax that has been around for 90 years. it is important because we use it for the highway trust fund to

keep our highways going. i propose to uss spend the federal gas tax without affecting the trust fund here is how we do that with the tax revenue up this year and deficit down over $1.6 trillion this year alone, we'll still be able to fix our highways and bring down prices of gas we can do both at the same time. >> details about the meeting with energy secretary jennifer granholm and several gas and oil executives the meeting will be held at the department of energy headquarters in dc it will start at 11:15 it is expected to last 45 minutes. attending is the ceos from the seven companies president biden sent letters to last week about adding refinery capacity marathon and valero and exxonmobil and phillips and chevron and bp and shell

they are asking why they not producing more oil refineries are running above 90% capacity and asking them to do more could pose a safety risk. we will see if they make that argument they will bring up the issue that the administration has been telling them their industry will be phased out over time. they will be asked to square that circle. >> brian sullivan was talking about this early this morning. he knows the situation well. according to his sources, it will be a 45-minute meeting which is not a lot of time to sit down and have a productive conversation about things that may be able to be done it is more of a scolding do this and on your way. >> isn't this a photo op a 15-minute spray. a photo op you don't want to be

in >> hthis is jennifer granholm. a little bit of a mess >> you don't want to be left out. >> left out of the group >> not one of the big seven. >> what about number eight you are right. you don't want to be there you might. it happens with us at certain times. oh, my gosh. the good news is you have to meet with this person. you weren't invited. >> what do you think they could say on either side >> andrew, when you lose "the washington post. this is not -- it will not work. no reason to do it. >> what would you do what would you do? you said it. near term. i'm not playing long term. >> i wiould play superman i would reverse time and go back

to tell everyone to shutdown and reverse that >> that's impossible >> i have seen it done >> in the movies it's complicated there is not anything you can do in the short haul. by the way, if you listen to mike wirth at chevron, they are raising capital expendexpenditus >> i'm getting fatigued with the tribalism of the two sides saying who is at fault and what do we do it is a long-term solution at this point, i think -- i did fill up a couple of times. we are all lucky it is not something we have to choose between goas and food. the cure for high prices is supply and demand. this next thing is -- this is what we talk about all the time.

you face the reality of your job as fed chairman. it is historic demand. that's a terrible tool you need. inflation is worse that is what jay was admitting told senators the battle against inflation could lead to raise interest rates to cause a recession. the economy could be in for a hard landing he described the forces. >> what we were looking at was a world in which you didn't see inflation move up when unemployment was an extended period below 4%. how long will this new set of forces be sustained? we can't know that in the meantime, our job is to find price stability >> powell will testify this afternoon. back in the time, volcker said

the standard of living for americans could go down for a couple of of years based on whaw need to do inflation might be worse that is what these guys decided. long term. you wouldn't think so, inflation can slow down demand you like to just let things run hot for a while. more insidious can you imagine picking recession over inflation >> a mild recession? it is like a doctor telling you it is a mild surgery as if it happens to somebody else if you lose your job, it feels differently. >> you got six months. doc, i can't pay you okay, you got a year >> that's a good one >> you heard that one, sorkin? >> i heard it this morning just now >> do you get it >> sort of

>> it's early. jim cramer interviewed mark zuckerberg on "mad money." they spoke about biduilding the metaverse. >> we feel we need to develop the stack. from the hardware all the way up to the software and experiences on top of it we will do that. that's a big focus for us. we are at this point a company that can afford to make big long-term research investments our north star is by the end of the decade, we hope to get to 1 billion people in the metaverse. i think there will be a massive economy. >> the investors cut the market cap in half and as the users decline for the first time between the last two quarters. mark zuckerberg talked about the potential recession and how that

will impact shorter ai investment >> we will continue to make investments. we will modulate it a bit if there is a recession we will invest heavily >> i would like to see jim and mark zuckerberg in the metaverse. they hung out there a little >> they did? don't gas prices go down in the metaverse? >> if you never move >> yeah. >> sure. i don't think that's -- >> cost a lot to power all of the things you're doing? >> electricity no it will create -- look, have you done it yet? have you played with it? >> ask me if i bought something online start with that. >> it is amazing if you go into what is a horizon room >> you have an avatar? >> you can talk to somebody in a meeting room and they are in hong kong and you are here it is incredible

>> how is that better than zoom? >> way better than zoom. i would rather see him speak to me face-to-face. >> the emotional connection in the room with mark you just feel like you're in the room with him. in a completely different way. >> does it pick up the emotions? >> yes tru trust me it is still -- >> making it up? >> no, more in you feel like you're there it is a crazy situation. >> you can be there on zoom and you have crappy lighting >> it is not ready for primetime, but you should experiment with it you will say i can see what this could be >> it will replace conferences and replace travel you will not do business travel or family vacations?

where does this -- >> i see it across the board there will be conferences you won't go to or meetings you won't go to. >> i already do that with zoom >> at another level. it creates some level of inequality there will be times where the wealthy among us will go on actual trips you visit costa rica or europe this is where the opportunity lies people who can't afford to make those trips who will be in the living room and be on the trips. you are looking at me like i'm crazy. >> is this cartoonish? >> no, this is the beginning >> more realistic? >> it is very early. even this, when you are in it, and i know it is crazy when you are in it, you feel it in a way it is hard to articulate you have to try it just saying.

>> i'm back to wall-e. make diabetes medicine >> now i understand why my children would say i would buy a cool photo or picture or nft to hit behind me in the office. i'll have a pair of digital jordans so people can see me >> if all of your friends are there, they will make fun of you. >> once you are in this, you see how it happens >> does it sound realistic to you? 1 billion people in the metaverse spending hundreds of thousands of dollars >> you were in davos glenn hutchins was there and he wanted to watch the celtics game there will be a time where you can go to the arena and pay for

the tickets or sit in the front row, literally front row, turn your head and watch the game from davos or hong kong. >> sitting next to people who are actually in the front row? >> or digital version of it. it won't matter. you will be literally there. >> i see a case for it >> and how are those tickets priced >> do investors believe in the product now or in the long run >> to me, the question is whether meta is the winner of this or does somebody else emerge or lots of people that is the larger question. conceptually i would be longer on this future than dare i say, on bitcoin? >> that's what i was asking. you don't believe in bitcoin, but you believe in this? >> i think we will all be living

in this ten years from now in a more meaningful way. >> what makes diabetes medicine >> get on your metformin now >> when you are in the system today, you don't actually want to live in there for more than 45 minutes to an hour. there is a feeling that is a claustrophobic feeling >> i have gotten motion sickness i have done that >> when technology gets better, you may stay in there for two hours. you will not sit in the digital universe for 12 hours a time people who play games may do that >> there's smells and sights and sounds and feelings. none of this does it >> you can still live -- >> if it is raining, you will have two nozzles that spray mist at you or something?

>> think of all of the people sitting or working from home now and have a terrible experience or sitting in a conference room somewhere trying to do zoom calls. that's a terrible experience this is better than that >> there is no way rich people are going to australia unless people are putting on goggles and pay money and say i'm in australia. >> 100%. you will travel to australia >> people will have phones that are like computers some day? why would anyone need their own computer >> this is like in the 1990s the avatar when i -- we had avatars >> you are spoken for? >> my avatar >> i wanted your avatar. >> you should go out and buy it. i don't know who is selling it i don't know how much they are pricing it >> you have the rights you decide

>> i'll talk to dom chu. >> some people will play the course and some people won't travel to play the course. that's the point. ok> and later, the fda is l loing to force juul labs to take their e-cigarettes off the market that's coming up >> announcer: this cnbc program is sponsored by truist securities dave doesn't need a posh virtual receptionist, because he cloned himself. while his clone watches the phones, dave can work on his code. and lead his team. dave trusts his clone like he trusts himself. so, in summary, we're going to sell the company. who's in favor?... perfect.

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s&p up 14 and dow up 44. nasdaq up slightlynow. dom, is that you this look like this is reality it is dom chu. this is not dom's avatar >> i was fascinated by the discussion joe, i'll say this because i think i'm tilting more toward andrew's point of view in the process because i think the holy grail for the companies in the future will be the idea that you can make things more accessible to masses at a more economically generous price point i can see it happening at the same time, i am feeling it myself. this weekend is the premiere of "west world" on hbo. that is all about androids and robots fascinating discussion the real me will take you through the thinner pre-market trading getting going now.

one of the things we are watching is occidental petroleum. they are up 1.5% in the pre-trade. we are seeing a more decent pickup in volume berkshire hathaway has upped its stake again by buying $500 million more of stock. that brings the stake to 16% plus of occidental petroleum that is moving things along and they are up 2% in the pre-marke trade. and one call that is getting more traction and attention is cloud computing and snowflake is up due to a call by analysts by jpmorgan chase who upgraded them to out perform

they think that they like the trends they are seeing and the ability to generate more free cash flow. they pulled a ton of chief information officers and i.t. executives snowflake ranked high in the spend that companies make in the types of companies in cloud computing. you can read more about the call on cnbc.com/pro. one other place is a bit of acceleration in the mega cap technology in the pre-trade. tesla and nvidia and amazon and meta and alphabet gaining in pre-trade. we are seeing more interest pickup joe, this is where the rubber meets the road it led to the down side and now we are seeing at left a little bit of what appears to be nibbling as these valuations have come down, joe.

>> so you and your fat cat friends are out at pebble with the ocean mist hitting you and the smells and sights and sounds and feeling of number 7 and number 8 the pleebs and dregs are in the basement swinging away is that really the world you see? that's very classist i don't like that idea >> i take your wall-e point. that was a show that resonated with me. >> they are all circling around the earth and they're all fat and eat in the meta veversemetae >> joe, a good friend of mine installed a robust simulator in his home over the course of the past year. during the winter months here, i sp spent a lot of time at this guy's house playing on the golf

simulator when i could not play regular golf now nothing replaces the real thing, joe i will always enjoy playing golf i don't have many fat cat friends. >> now you are back to a video game i like video gaming games whereu play golf. that doesn't mean i want to live in the metaverse >> i might mingle and dabble in and out. >> think of this the average kid between 12 and 17 years old is already playing 2 to 3 plus hours a day. >> video games i don't want to live in the metaverse. >> how many hours are people spending in zoom in the business world, you may be at zero i'm in zoom several hours s a d? >> is it meta or facebook or a combination? >> it is all we will see. when we come back, more on squawk

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welcome back to "squawk box" we have the conference kicking off today and the theme is two and a half years into covid is against the odds highlighting leadership through difficulty joining us with more is carla harris with morgan stanley carla, i want to understand how this event is different and given this environment which shifted especially with startups and venture capital and fund raising. >> first of all, thank you for having me. good morning to all three of you. we will talk about against the odds leading through turbulent times. in 2020, we had a crisis how do you manage through that and in 2021, we learned a few things no one expected the surprises we had in '22

it changed the landscape for investing in early stage companies as you imagine as the pandemic has gone on and inflation on the scene and not something we were talking about, you have many ecs who have taken the time to stage in the companies in the portfolio which means they are slowing a bit on investing in new companies we will have conversations about large cop rrporations what have we learned about the health economy we will speak with ron williams. we will have a conversation with os oscar munoz. >> carla, how many were head factio fakes in the last two years for companies? it seemed like the end of the world, but from the economic perspective, it was almost an

"alice in wonderland" issue where companies, especially early stage companies, had a runway to heaven that was going to go on forever >> i tell you, we were not telling our companies they had a runway to heaven we were saying take advantage as you should take advantage of the market that is plentiful to use your word. at the end of the day, companies were careful with the burn rate. we had the conversation with the window closed. we were telling our companies to be careful and take advantage of the market be disciplined about your spend and your burn. i don't think that sentiment has changed with early stage companies. valuations have changed, no question >> you say win ddow closed is the window closed when do we see private equity and venture turn into vultures >> i would not say the window is

closed, but the pendulum has shifted. it is a buyerbuyers' market i say it is closed as you know, this time last year, when we spoke, we announced the next level fund. in 11 months, we made 8 investments from the fund. we had no issue in being able to find early stage tech companies founded by people of color and sla and/or women >> carla, thank you for talking to us. >> i look forward to speaking with you again. still to come, president biden going after oil companies slamming high profit margins unacceptable and calling on boosting gasoline. ceos head to washington to respond and get another earful

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welcome back to "squawk box" live from the nasdaq market site we think, in times square. futures are up 812 p2 points s&p up 17. i thought a lot about last thursday, like jim did, as well. maybe i'm in the counter

cyclical rebound that resolves itself with new lows i'm thinking some stocks are down so much and there is so much pain in areas. >> the journal with netflix. >> i think it is under value especially if nbc helps them with the advertising added i don't know wishful thinking it will be painful if we go to 3,000 on the s&p >> what about if you build back and cut the fall and things look scary? >> i hate october. i love halloween i hate october so many times we have this, you know, a long sickening selloff that bottoms in october. can you bottom in the summer with low volume? have we done enough with vix at 34 has it gotten 40 >> are we going to hell in a

hand basket? >> i hope i'm wrong. >> oil today is down to 100. >> the president is trying to give some relief for the summer. president biden calling on congress to create a three-month federal holiday for gas and diesel fuel taxes. this comes as gas prices in the united states are 8 cents away from the all-time high we have helima croft with us helima, i'm almost done with the gas tax at this point. when you look at the new york times and washington post talking about the skepticism it may not have enough democrats on board to do this. why not talk about the administration moves today and bringing in seven ceos of oil and gas companies or head of

operations into the white house to meet with the energy secretary jennifer granholm. what will they say to her in return >> the administration is desperate to get as much oil out of the ground as possible which is a stark change from coming in to the office and say keep is in the ground the question is how much more can u.s. oil companies do in terms of accelerating production the refining side is challenging, becky refineries are bringing in 94% capacity it is hard to see how we get more refined product quickly the administration, i think, wants the optics to look like we are doing something to get more oil and gas. they were criticizing them lanat the white house last week and now praising them. >> and if they get more capabilities to get above 94%

and it could be dangerous. this is not a safe situation is that a valid point and is there anything to be done on the refining side of next other than demand destruction >> unfortunately, this market will have to be balanced by demand what is interesting with the gas tax holiday which will not get through capitol hill, that was a move that would potentially simulate which is in stark contrast to the situation in europe if germany's economy minister is saying they will potentially have auctions for gas this summer they are facing a full shutoff of russian gas in europe, they are talking about pulling back on consumption. we're not there yet in the united states in terms of messaging to consumers. >> what does it mean for manufacturing? will we talk about more supply chain issues as a result of this >> becky, this is a serious situation in europe. the iaea head saying europe

should prepare for a complete gas cutoff from russia we were looking at rationing measures and industrial curtailment. this situation in europe really does look like an energy emergency as we head into winter. >> is there anything the united states can help on that front especially when one of our natural gas exports caught on fire and will be down for months >> becky, this is the challenge. essentially u.s. lng is going into europe. there is not additional volumes to put on the water. one thing to watch for is there is situation to export with product and lng. that would exacerbate the issues in europe if united states makes that move. >> you are talking about geopolitical concerns and ratcheting up tensions with people who are partners on this and say we will help you and try

to slow russia down. that seems all fine and well until you realize you have to ask your consumers to pay more in natural gas prices and oil prices and energy prices across the board. by the way, you are facing elections. does it come to a breaking point? >> this is an issue in europe. i think that is part of the reason you have leaders in western europe talking about ukraine needs to start thinking of territory concessions in the east you do have this fracturing starting to emerge and western response where some people are saying maybe ukraine has to make some concessions that is not the u.s. position or the uk position or the position of eastern european nations. there is rising anxiety about what a tough winter will look like for europe if people have to choose between eating and heating. this is a grave concern. >> helima, this week, darren

woods said this is a tight energy market for the next five years to come. is that the situation for you? >> we have a lot coming from the sector and we have a lot of recovery and demand. it depsn't look like there is addi additional supply out there barring recession. >> not what we want to hear. helima, thank you. >> sorry thank you. coming up, elon musk says tesla's newest factories are burning wcash we will show you his comments. and we will talk to governor chris sununu from new hampshire. "squawk box" is back after this. >> announcer: currency check is sponsored by international

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okay you have to hear this. only elon musk would say this al aloud. tesla's two factories in germany and texas are losing billions of dollars as supply chain issues is causing them to hurt production the gigafactories are gigantic money furnaces >> berlin and austin are burning do dollars. a ton of expense and hardly any output getting berlin and austin functional and shanghai back in the saddle fully are overwhelmingly our concerns. >> musk hopes to resolve the issues quickly tesla shares are down 30% this

year. >> this is not a huge news flash. >> no. it was more of how he describes it if you were to ask the other automakers and ceos. they would have supply chain issues they would not say it's a money furnace. >> he is colorful. that's why people like him >> the federal government. >> the money furnace the fda is preparing to pull juul products off the market wworld without juul doe want to live there dr. scott gottlieb is here to react. "squawk box" will be right back. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure th the oneh the ing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened!

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. the fda preparing to order juul to pull its e-cigarettes off the market as early as this week according to the "wall street journal" this comes after the biden administration says tuesday it plans to establish a maximum nicotine level for certain tobacco products by may of this year joining us, scott gottlieb he firsted announced the plan to regulate nicotine levels as head of the fda in 2007 people want to do what they want to do is one thing, but nicotine doesn't even do anything for you. you just sort of instilling an addiction that you don't need in the first place. just get rid of it completely, i think. is there anything good about nicotine consumption, doctor

>> well, look, it's a legal substance. the plan we had in 2017 was to reduce nicotine to non-addictive levels to make combustive nicotine less attractive the plan was to try to open up avenues for non-combustible nicotine delivery for adults who still wanted to enjoy satisfying levels of nicotine so we tried to get more formulations onto the market but also put e cigarettes through appropriate regulatory gates to make sure they weren't getting into the hands of kids and offer an alternative to adults remember it's the combustion

that causes all the problems not the nicotine itself. >> is it a bridge too far? >> the plan now is following a framework of what we put forward in 2017, but it was a multi-part plan they've done that. they've authorized three different products, three different e-cigarettes as well as the product from japan tobacco. juul may be denied the issue is whether or not the fda is going to consider the leg sieve youth addiction with that product and that it was inappropriately marketed to children and became the fulcrum of the youth addiction crisis with vaping. juul's going to argue that this shouldn't be included because wasn't part of the application i suspect fda's going to look beyond the application and look at the history of this product,

and that's going to be a factor in how they weigh their decision so if they reject juul, i suspect they got in a pretty complete application, my hunch would be that it would turn on the legacy associated with this particular product >> i'm feeling an addiction to covid discussions. i can't believe we're not talking about covid. is that a good thing we've done it for two years whenever you're on if i see scott gottlieb, you're talking about covid. we're see a rise in cases but not serious cases. is that it in a nutshell >> i think the bottom line is we have a lot of immunity in the population that's certainly what we saw in south africa it could go the other way. we could get another variant that is more pathogenic, but we've seen the new versions of omicron seem to be less pathogenic

there is some speculation that the new variant building in prevalence is worse than the b.2 infection. but that's not what we saw in south africa. the big question is how well do the vaccines work against the new variant? we have data that suggest that the vaccines work well when it comes to preventing hospitalization, but not as well when it comes to getting the illness. the company i'm on the board of is based on the b.1 variant. >> do you see a second wave of vaccine coming out meaning one based on the b.1,

which has been studied now and a second that would come out come winter in winter >> the question is going to be whether we pivot to the variations for the fall or a combination of the existing strain or the b.1 or do we formulate new vaccines based on the other variants moderna put out data yesterday that does seems to be more effective against the omicron lineage generally. to have in your back pocket, a vaccine formulated against b.4, b.5. or maybe added protection for

older people and people immunocompromised. we're going to have insight into their thinking coming out of that meeting >> next time out we'll find out about china and what inning they're in it matters for the rest of the world in terms of economic and health concerns, but they making progress no one's got any immunity. >> that's the problem. they're not making progress in terms of getting a new vaccine deployed protective against the new variants >> you actually spent a lot of time on that good to have you on. where are you? is that a zoom thing we got going? >> i'm in boston >> you got a ring light? you're missing the ring light, right in. >> very i have a light in frontf me doesn't look good? >> this is the universe, i don't like it.

when we come back, the major energy executives are heading to f what sources say will be a scolding. more details coming up, "squawk box" will be right back. nancial. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. i'm what you call a boutique hotel. i'm looking to provide a more unique experience. do you like single origin coffee over a game of chess? me too. ♪♪ [phone: starting route.] technology helps us navigate to work. [phone: go straight.] but, to navigate the complexities of modern work... [phone: turn left.] ...you need more than technology.

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the white house running out of options to ease the pain at the pump, and with little support for a federal gas tax holiday, the administration wants to talk to the producers themselves. a preview of today's big meeting with oil executives at the white house. that's coming up fed chair j. powell telling senators that the battle against inflation could cause them to raise interest rates high enough to cause a recession >> we believe it will raise levels into a moderately restrictive level because theis is very high inflation hurting everybody. and the drop in crypto the second hour of "squawk box" begins right now

good morning and welcome back to "squawk box. we're live at the nasdaq market site in times square take a look at u.s. equity futures at this hour the dow looks like it would open up about 142 points higher and the nasdaq would open up about 121 points higher. we also want to show you treasuries the ten-year you can buy a barrel of wtiif that's how you want to do it for $105.69. cnbc can confirm that jennifer granholm and gas and oil executive also be meeting at 11:15 eastern time we will be speaking with the

senior adviser for energy security we'll find out what we might be able to expect a little later today during that meeting. >> let's get to dom chu. >> we have an earnings mover in the last 15, 20 minutes or so. that's tech consulting giant exex s a sen tour it's a mixed picture more companies are spending often tech consulting services, trying to digitize their services and work from home and that sort of thing but the earnings were missed revenues were better, and then the outlook for revenues there was raised so they raised their revenue forecast, because more people are spending on this kind of service. but they trim the overall range on the high end to their full-year adjusted earnings per

share. so, again, a very mixed picture but on balance in fractional declines speaking of that digitization and hybridization of work, we have wework shares an outperform rating and a $11 price target, roughly double where it is right now. they think this digitization and work from home type of economy is going to have some legs and a lot of other bigger companies will not look to spend on massive real estate investments while they can scale their operations with companies like wework they also think the free cash flow will be there by 2023 we're holding with bitcoin prices ether is $1107 and change.

some of the smaller coins and tokens posting bigger advances than bitcoin, and micro strategy and other companies that have more bitcoin focussed balance sheets, joe, there's an interesting dynamic here it used to be that line that people wanted to watch was 30,000, we've already broken well below that. it seems like it's not just psychological at this point. something for a lot of technicians are trying to see if it plays out at that 20,000 mark >> interesting piece in the journal. op ed piece on crypto. also interesting, when we had katie stockton on a week and a half ago, she was thinking 19,5 might be a good support level, then she said 13,5 i don't fknow what to think abot

that >> nobody does, but the price option draws everybody in. here's what i would say. my feeling in talking to traders and investors who have kind of a crypto exposure is that what it has done over the last few months here has reframed the discussion about risk tolerance for some of these things, right in so they may or may not feel as bullish or bearish about it but they do know what they will risk in those kinds of trades. >> 60% is a big move we were looking at docusign. big companies, too some major companies they get cut in half remember the mean stocks? who in their right mine rd really belie

that stuff the nfts >> i'm not in the nfts i am now invested in a fund manager that does the crypto managing for me. i've reframed my thought process into how much i want to put into that market. >> just don't try to take your money out of that fund >> i'm waiting to see what happens. joining us now to talk more about the markets and what may be working, the co-founder, what do you think's working we've been talking about what a value stock is today is netflix a value stock >> you know t , it could start enter the territory of value stock. i don't think netflix is

going away you have the stocks that double, double, double and then cut in half and i think netflix is one of those that will probably look like a value stock soon. it's not one of the ones i'm looking to get into per se i actually like the more classic mega cap tech. i think they're going to start to work and i think that the opportunities are really in that space. >> give me some names. you like microsoft >> yeah, so i like microsoft microsoft year-to-date is down mid 20% or so. and they've got a good story there. about 63 billion they have 2.2 versus 1.06. the company is strong in cloud 32% year over year growth in cloud. they're doing acquisitions that they're going to play in cyber they're going to be involved in the metaverse gaming world

the world has changed. you can't find people to work for you, and factories have been less efficient without technology and i think it plays there >> here's the hard part to figure out i think you've seen some companies start to tell us that earnings are going to be worse than expected. do you start to see that, is this a one quarter situation, or a much longer term situation >> you know, it all depends on what happens essentially with the fed and whether or not we have a soft landing. the mix of aggressive tightening and a soft landing feels like a contradiction. that's what we're seeing play out in the markets you're not seeing money really come into the market and being put back into play to get that other short term massive bull run or, you know, starting to see a recovery what's happening with these

companies, especially the big cap names and company ies that e well-positioned is that they're going to survive this. they typically do, they have historically will they see slower earnings growth in the near term? they will, butla that tends to recover in a year or two the names that pull back 20% to 40%, again t goes back to not being able to call a bottom but seeing a lot of the top names in the market being destroyed and thinking about dollar cost average for the long testimony these names aren't going away. >> sylvia, want to thank you appreciate it. >> thank you coming up, a supply chain concern and inflation. we'll hear from cort furniture check out the leaders and

laggards right now "squawk box" will be right back.

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higher prices could be hitting around the house as furniture retailers continue to contend with supply chain concert concerns join us is jeff peterson, the ceo of cort, the furniture company with berkshire hathaway. you do furniture rentals for homes, consumers, business and events i would guess the event business kind of dropped off the cliff during the pandemic. how have things gotten since then, and where do these three business stand at this point, the three branches that you're really dealing with. >> sure. the recovery's been pretty vibrant for us, obviously the trade show and events business

hit once the pandemic really shut down. since the recovery, that business is back to about 70% of its pre-pandemic level, which has been great for us. the furniture rental business, pretty much stayed in tact the office business, a down turn a little bit, but that's been roaring back as well our issues have really been making certain that we have proper supply, we probably could be doing more business today if the supply chains hadn't been as hampered as they were during the pandemic but we're actually very pleased with how things have progressed >> what about inflation, how has that impacted your business? >> well, normally a little bit of inflation is actually, believe it or not, good for our business it continues to make business folks make mortem e temporary decision rather than long-term

decisions. the impact on the trade show and events business is really less because those are contracts that have been put in place pre-event. so whether you' got tremendous cost push inflation issues the trade show and events business is pretty well-set year by year. >> so if a little inflation is good for your business, what does 8.3 or 8.6% inflation mean for your business? >> well, we haven't really seen much change in the demand pull side so far, but we are spending an awful lot of time analyzing that to make certain that as we get additional cost passed on to us that we're at least staying in check with our customers. we have a lot of relationships with multi-family housing, and big event planners and we want to make certain that what we're doing is sustainable but keeping a very, very close eye on what's happening with the

demand side. >> the idea of arecession, i would imagine not just recession, but the idea of a mild recession, that could probably help your business, too. so when you hear j. powell, the fed chairman, talk about how they're going to raise rates, even if it means that they put us in a recession, i guess recessions all come in different flavors. >> long, protracted recession i don't think is good for any of us but, again, if what we're up against is a certain amount of interest rates rising, it does tend to be good for folks that are then going to make more short-term related or temporary decisions. >> i know you refresh your inventory avenuevery four to fie years. you use this furniture, put it out. and then put it on clearance a lot of it coming in things like patio furniture, some of the furniture that they couldn't

get supplied people are moving on and aren't buying the same. a big backlog of inventory where retailers are discounting that stuff, is it tough for you because it makes it more likely that businesses and consumers will just buy interest own or their own how does that work out in what it means for new. >> sure. our inventory model is a little different than the average retailer we have to make decisions well in advance of what's happening in the market, because our time frame for delivery is usually 24-48 hours from order so unlike a retailer, who might take three or six or nine months to get you something we've got to have it on hand now the relief valve for us is the clearance. and very, very vibrant we do have that as an

alternative means to flush assets if we need to, if there's a protracted slow down so we're less concerned about that, perhaps, than big box retailers. >> and jeff, what's just your general sense of the economy from everything you see? >> well, i stay away from words like transitory at this point. i do think that what we're seeing is unique in the sense that you have monetary policy, demand pull and cost issues. and certainly nin my business life we haven't seen those three factors working as hard as they have been against the consumer so i don't think that the landing necessarily needs to be difficult, but i think we need fiscal and monetary policy to help mitigate that >> jeff pederson, good to see

you, thank you the pilot shortage causing american airlines to cut destinations details after the break. and he's been called the president's energy whisperer we've got limhim on the show. he's going to discuss today's big meeting with oil executives. and greg fleming will be joining us "squawk box" coming back with all of that in just a moment time now for today's aflac trivia question. who is credited with pdurocing the first branded chewing gum? the answer when cnbc's "squawk box" continues paul is about to suffer a shelf-inflicted injury. luckily, aflac will help cover his unexpected medical bills. aflac! maybe you could use the money to buy a step stool. i have a step stool. so why are you climbing a shelf? the stool's on top of the shelf, isn't it paul... (shelf crashing)

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now the answer to today's aflac trivia question. who is credited with producing the first branded chewing gum in the answer john curtice in 1848, curtis created the state of maine spruce gum, which was made from tree sap american airlines plans to drop service to several small u.s. cities this september

citing pilot shortages among those cities are dubuque, iowa they cite a lack of aviators, a lack of pilots and andrew, vi have come tornad yaround to your way of thinking. travel at large, but they need to find a way to do this quickly. the reason they are cutting this off has to mean they are taking those rooegional pilots and movn them up very quickly >> can you imagine the state of the industry if they hadn't done that >> it would be a wreck >> part of the problem is they offered buyouts to all the pilot

force early retirement >> the pandemic threw a wrench in so many different things. >> the issue that i've had, as you know, we bailed them out in a very specific way that was different than all the other industries, and the whole purpose for those bailouts was to keep people on the payroll. what they did was take people off the payroll which put them in this predicament. you have people saying give us this money, keep everybody on the payroll, and what they did to try to save cash, which i understand why they wanted to do it, but don't ask for the bailout. which, by the way, there was other capital available from the free market. >> the next time be ready for something, meaner and meaner >> you have to be a capitalist or a -- >> they have not taken as many people off the payroll you should share some of the pain it wasn't enough money to keep

everybody on the payroll that was the problem but the federal government said we will pay for this >> and then the question is, look at the profits that they're going to make, right >> that's after you're getting killed this is like the same thing like the oil industry i don't want to talk about the -- >> talk about record profits, and they're not record profits >> this is probably going to start becoming an issue in congress when you start cutting off small cities like this >> completely g cong. >> congressional representatives are going to be upset about this >> 100%. and you can see that in the cities >> when we're all sitting at home vacationing you leave the set to relieve ourselves, in the metaverse, what does that look like it's a diaper, basically, it's a diaper >> you're not living in the

metaverse 24 hours a day >> you have to go one and two? >> this is way too much information. >> is that what the metaverse iis for going to the bathroom? a diaper in. >> i do know that formula 1 drivers, for example >> wear diapers. >> they do, and i believe some of the people who play video games for countless hours do the same thing >> they have to change the seats at the slot machines in atlantic city >> new year's eve here >> i've heard about that, too. we have a great bathroom right here outside we get to watch all the time so people that are coming -- >> that corner has been taken over >> we have latrine right there bitcoin hovering my workplace benefits. voya helps me feel like i got it all under control. voya. well planned. well invested.

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new details about a meeting between energy secretary-general ever granholm and energy exec executives, cnbc can confirm it will start at 11:15 eastern and

expected to last just 45 minutes. in attendance will be ceos and executives from the seven companies president biden sent thoselaries to last week about adding capacity, like exxon, shell, valero, marathon, phillips 66 and bp joins us to discuss the president's energy policy, it's good to, energy security, excuse me, amos it's good to have you on this morning. do you think at this point there's a way of getting this gas tax holiday through congress you read the newspapers, i'm sure it doesn't seem like the chances are that great >> well, first, good morning thank you for having me on the president announced yesterday that he was calling on congress to enact a gas tax holiday for three months and to work with governors from

allstat all states and give those rebates or fees from the taxes that the states have on gasoline and the president said he's willing to and open to working with congress to get that passed i'll look at the days ahead to see how that works out, but i think the president really wants to give a little breathing room for american families at the pump as prices have gone up $2 since the late fall, early winter when the forces started amassing around ukraine and the risks started coming nointo the market and then the decline in russian production >> amos, one thing, the journal has a piece, the u.s. oil and gas industry need as permanent

holiday to reduce supply anything else is just a holiday from reality a pretty good line, i know president obama cynically looked at not having, or having a gas tax holiday as a gimmick as well and cynical people have said there's an election coming nup i november it just increases demand you don't want to increase demand if you're not increasing supply it's hard to understand the rationale behind it, other than kind of an election play, a vote-getting play. >> look, let's be honest about where we are we have gone through a period of war where the markets can go up

$15, down $15 in a matter of days this is a kind of volatility we haven't seen before in normal peacetimes whet when it comes to production, the u.s. industry is producing at near record levels we are going to surpass that window of before the pandemic. we're going to reach that by the end of the year or the first part of next year. so oil production under biden is actually at a higher rate than under our predecessor and previous presidents. we have given out the leases they need. and there have been no restrictions, no regulatory restrictions, nothing standing in the way of increased production anyone who says we're standing in the way of oil production increases is just baloney. there is plenty of production on

the market the refining capacity has gone down because during the pandemic when nobody was driving, nobody was flying, companies shut down a bunch of refineries. and some of them are gone, they're not coming back. they've been turned into terminals and other things but some are idle. and some could come back and increase the capacity of diesel, which is a real problem. we're seeing soaring global problems the cost of natural gas in the united states is about $6 and change while in europe it's near 40 so we're still seeing inflation of gas prices, of oil prices but what we're trying to do is to say, look, we recognize there's going to be cost to the consumer for the president's position on ukraine and standing up to putin, but if we can give, during the driving season, three months of a little bit of breathing room and between the federal tax and state tax, that could be about 50 cents a

gallon i know some people say that's not much, but there are a lot of american families and consumers think that's a little breathing room they would accept and support. so i think we can afford it. i think the president is trying to, this is not, a gimmick is not lower prices for consumers these are, these are different times, and we're, as i said before, this is a time of war. >> right, some would say there's been a war on the fossil fuel industry since day one president biden has tried to limit fossil fuel supplies and we're all paying for it. do you dispute that as far as rhetoric we heard the president say? listen to what i'm saying. i'm going to put fossil fuel industry out of business that's a quote i can show you the video i cahow you other quotes tha were similar from a couple years ago. i can show you members of congress and the democratic party berating oil officials for

not cutting production to the same extent that it was cut over in europe. none of those, if you were an oil executive, would you make long-term plans? or if you were in the capital raising industry on wall street, would you be seeding a lot of money to this industry that ten years from now that certain segments want to put out of business would you want to do that? i wouldn't hake any lonmake any lochk-term plans >> look, it speaks for itself. we're going to see even more increase in production in the coming months. we're trying to do two things at the same time. one is address the energy transition as it is, meaning that it's a transition and that we need to have the supplies right now. oil and gas, in order to make sure that the economy is functioning. but we also want to make sure that our investments are done in such a way that we can

accelerate the transition to a cleaner world ahead. that means when the deployment of electric vehicles really picks up by 2030 hopefully, we can get to the car sales, many of the companies have said they will have 100% of their cars be electric vehicles sold so you have to manage this transition, knowing that you want to make the investments over the next 10, 15 year of supply, and making sure that you're accelerating the transition to a cleaner future that's what we're doing. we're not pretending that we don't need the supplies today. and the president has been actually quite clear for the last year, calling on suppliers both in the united states and around the world to increase that supply. so arguing that we are the solution to the problems that we face at the pump, the high prices at the pump as a result of stopping the oil industry of doing what it needs to do, that just doesn't meet up with the

facts. they're increasing production, they have increased. and hook look at the production levels that we're at how can you say that we're stopping anyone. they have all the tools they need they may not like the tone >> amos, you're right, we have seen many of the american companies increase production and refinery, something that chevron's mike wirth laid out the other day, how they increased production 2021 was the highest production they'd ever seen in gas and oil. but when you look at some of the overseas companies like a bp, like some of the companies that operate in the uk, they have not done that, that's in part because in europe they have things like windfall profit taxes. there's been talk about a windfall profit tax on some of these companies. if you look at what has been done overseas, it has meant they are not incentivized do does that tell you that it's a

bad idea and not something we should pursue here >> you're right. we have seen declines by some of the majors in europe i will add that i'm not sure that it reflects a decline in production overall some companies like bp and shell getting out of the north sea, but other companies have taken those assets and are producing them i think at higher levels than they were before. the windfall tax, that's something that has come up here as people have suggested it. we always look at all, at options, but for now, the president has taken the steps thathe has yesterday of focussing on trying to give a break at the pump for consumers. again, the 18 cents plus, if we can get the states to do it, getting up to 50 cents, i think that's where we're focussed right now in trying to give that kind of relief to consumers. >> amos, in terms of price, what is a politically palatable price

for a gallon of gasoline today in the american public where do you think you want to bring it to? >> oh, you know, that's a difficult question tfor me to answer the way we look at it right now, the price has gone up $2 since that time of the, when the security risk, international security risk started entering into the calculation of the oil price. and demand from covid, i think people forget that just a few months ago or about eight months ago, we were thinking about lockdowns with omicron in november, december and demand was suppressed and since that time of the pre-invasion and the growth, the economic growth coming out of covid and people going back to driving, the combination of those two and seeing these prices soar, i think $2 is a lot to increase for american consumers, and if you look at

historically, these are not the highest prices we've ever had on an adjusted basis, but these are pretty high prices and we'd like to see them go lower i would add one thing. no, no, just to say that the price of oil has actually come down something like $15, $10 to $15 over the last week to ten days and i'm hopeful we can see some of those reductions at the pump itself happen a little more quickly. >> but in looking ahead to november or 2024, do you have to knock a buck a gallon down knock two? i'm sure you guys have had economic but political conversations about what this means. >> i'm, actually, we have not had a political conversation about what this means. honestly hon honestly we've had a lot of discussion about the price of gasoline, price of oil and how

we get lower prices. we haven't talked about it in a political context. we're entering as july 4th is upon us, we're looking at people, the driving season picki picking up, and we all want to make sure the price is a little lower for the summer i haven't got ton sten to septer yet, let' alone november. >> what cures high prices are what the fed's trying to do, reduce demand. you don't cut the price to reduce demand. it's a tough spot to be in, for you too. we appreciate you coming on today, amos. today, amos. whether we right now, we're all feelin' a little strapped.

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we do have some green on the screen the s&p up about 27 points higher check out shares of darden, the parent company of olive garden, our favorite raised its quarterly dividend and authorized a new $1 billion share repurchase program so maybe all can you eat pasta >> and salad >> no. no running, running, running. run, run coming up, bitcoin back above 20,000 this morning. we're going to hear from the cht ident of crypto exchange f chlt and later chris sununu. j

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welcome back to "squawk box" this morning i want to show you crypto this morning, up just marginally, but it has taken a tumble over the past couple weeks. joining us is ftxu president brett harrison a lot of people are trying to make sense of where we really stand in the world of crypto, whether we are in winter, and how long winter may last

>> look, it's been a real wild ride for crypto, a sequence of particular events this the crypto space amid the backdrop of higher inflation, raising rates, supply chain disruptions, indeces for stocks, bonds and others, and that's going to affect crypto as well. >> we're looking at exchanges. everybody paring back. we've seen crypto winters before, is this winter different than other winters before it >> there are similarities and differences from pastimes with crypto the market has a short-term memory with these kinds of events the previous events with terra luna and everything going on with celsius we've seen knight where i

remember these things happen and then the markets recover the market forces happen to bring them back. i think we'll see that happen with crypto as well. we have an enormous amount of capital flowing into crypto which we think will bolster the ecosystem as these companies come out with new products and services, continuing to hire and bring people into the system that willeventually bring the crypto world back, is what i think. >> whethe >> the energy consumed and the entirety of that cost. is that an appropriate way to think about it or do you make the argument that it doesn't matter, that the cost is irrelevant. it's what the value on the other end is to the end-user >> yeah, it's difficult. there are a lot of different proposed methods some of it has to do with the future flow of all bitcoin that could be mined in the system and

of course the cost per mining of bitcoin. some of it has to do with people feel is a store of value something that is independent from a particular government controlling monetary supply that's safe and be able to be moved anywhere around the world. you know, safely and instantly in a crypto graphic fashion. and of course there's going to be correlations between bitcoin and other assets which have other functionality as well. >> sam bankman made an investment in robinhood. what's that about? >> so, you know, not going to speak for sam here of course he was a passive investment in robinhood. equity prices are down across the board. you see high-growth stocks down, 70%, 80% from their all-time he highs. but as a company we've been very

interested in robin hood's business model we acquired appropriate dealer we a few days ago announced that we acquired embed. we're very interested in that space in trying to give people a very unified investing experience across the board. and we like the robinhood business model of trying that all from one service we think we can do a better job when it comes to transparency. we've been keeping a close eye on them. >> is that unusual, though to see the ceo of your company take a stake in a rival, which you're saying now you have an interest in >> you know, it's not a zero sum space. we invest in a lot of different platforms that might have an overlapping business area to ours whether that be different kinds of nft platforms, one

thing that's pretty cool in general is it's much more interconnected and people connected to each other even if there's competing business interests. robin hood entering the crypto world but being in general financial service provider, we think there's a lot of overlap with us. >> is there any lesson in the current winter we're living in, it used to be 400,000, i think we may be at 100,000 or lower. at some point do you say this was a strange alice in won wonderland moment? >> not commenting on board apes in particular, the sequence of

events in crypto, defy tokens, or you have different lending institutions that are recomplicating assets this has en a timr extreme experimentation in crypto. that's why it's so important to get proper regulation in the u.s. so we can remove a lot of these kinds of actors from the system that are doing things that will ultimately bring a lot more risk to the system and not create the mature industry we think is possible with crypto. so the shortanc answer is, hopefully one thing we'll get from this current crypto winter is coming out stronger wit better risk management and more reliable systems to make this industry a secure, financial

one. >> we appreciate it. and we wish you luck, especially given where things have stood. but we'll see where it all heads. thank, man >> thanks so much. till still to come this morg self-driving company cruise, the first time fully-autonomous vehicles have carried paid passengers that is next as we head to break. let's take a quick look at futures. we went from the red to the dow being up about 170 points. "squawk box" will be right back.

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like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq good morning yesterday j. powell said sticking a soft landing would be challenging. and the fight over potential federal gas tax holiday begins president biden wants one, even though some say it could be

co counter productive in the bay area, driverless taxis are now a reality. we've got the first interview with the ceo of a company behind the project. the final hour of "squawk box" begins right now good morning, and welcome back to "squawk box. i'm joe kernen, along with becky quick and andrew ross sorkin nasdaq up 106. the s&p indicated up 24. so yesterday, you know, saw early in the morning, 450, 500, then suddenly its was up and tn

it closed basically flat an interesting day in treasuries oil down it had been under 120. >> that's some relief. and you should anticipate you will see lower gas prices temporarily. right now let's go to mike santoli. he's been taking a look at how the market's gauging the chances of a soft or hard economic landing after the remarks from fed chair powell, and it would be difficult to thread that needle it's jarring enough to hear a federal reserve head say, yeah, we have to do this it's going to potentially cause a recession, but it's more important that we do that than live with this inflation >> for sure. we have a fed acting as if it has a single mandate for this term, which is getting inflation under control.

j. powell's been pretty consistent about this, saying soft landing is the aspirational goal, can't guarantee it after being oversold coming into the week, you have a few events coming toward month end that should give it a little bit of a lift and only prices and treasury yields coming in now whatyou have is a first step you need to get above last week's highs just about 3800 this is a process. this isn't a switch that goes on or off around 4,000 on the s&p 500 is where you'd want to see the market surpass that's what you'd be looking for. talking about commodity-based inflation. that sort of peaked as far as the market's telling us. you have the xle, the energy sector, the big correction in a very strong uptrend.

but here you have ag companies and metals and mining that have really rolled since the spring from this measure it seems as if the market is saying we're a little more concerned about the slow-down part of the risk as opposed to the further inflation story. it's really all a part of what the fed might have to do take a look at high-yield. you see they mostly have been going together most of the last year they've been tracking together except for you've got the admini separation here. they're widening since 2016. and so it shows you that the fed is getting the financial tightening that it wants it just doesn't want it to go too far and become too disorderly i think you would argue it hasn't yet, but you have to

monitor that as a macro risk factor >> if you look at the reaction with energy prices coming down so significantly, with the treasuries being muted with some of the moves and the yield the being pulled back in two it looks like in hindsight j. powell did what most people wanted him to do by saying that, saying those things, it did have at least a reaction over the last day in the markets. >> at all costs, and now the job of investors is to figure out exactly how much of a cost that's going to be in terms of economic growth. now he did say the market has gone a long way toward pricing in the fed's outlook of where rates are going to end up. but he also said the fed has to deliver on that. you can't just kind of jawbone it and say mission accomplished, the market got there, because that won't allow tightening to follow through and get

convincing evidence that inflation's under control. >> mike, thanks, we'll see you later. >> one of the republican senators said, if thisdoes sta bad, inflation for a long time, your name's, it's going to be j. powell is going to be the guy that let inflation get out of the bag. that will be in the back of any fed chairman's mind. and can you have not necessarily a hard landing, but volcker called for a recession and he's a god or demigod >> >> you're right about volcker. >> he said it. let's talk to a guy, be interesting, tstay tuned we mentioned yesterday that he told senators that sticking a soft landing would be challenging and he see s interet rates continuing to go up.

>> i think the market has been rea reading our reaction function reasonably well, and what you will see is continued progress toward, expeditious progress toward higher rates. the center of the committee wrote down that rates would be between 3% and 3.5% bit ey the of this year >> talks about interest rates and much more, greg fleming at rockefeller capital management a career in all kinds of conditions which will be helpful to us here i was getting ready to ask you, remember when you orchestrated the sale of merrill, because you saw how bad things were going to get. do you see anything that tells you systemically that there's minefields or something under the surface that could really be

bad if times get tough >> it's good to see you. i was listening to the three of you while i was working out. maybe at some point i come into the metaverse and bring my a avatar there's good news and bad news there. they got behind the curve. and expectations are a big part of inflation and if people across country start to expect higher price and look for higher wages and it gets embedded, that's a problem. they fell behind the good news is they got it now. and clearly they understand, and part of had this is the lesson the '70s you were talking about volcker and burns. the moves are sid

i think they stay at 75 basis points until they feel they're bending the curve here his language is clear. in the last weeks and month or two he's talking about the higher and higher chance that it's going to be hard on the american people and the american economy. and part of that is because they got started late so now, yesterday, last couple days he talks about demand destruction and interest rates being a blunt instrument they are so really he's trying to slow it you can't slow it in some places it's hard for interest rates to affect food prices, energy's largely outside their control. obviously there are other factors, the war they got behind the curve, they know it. they need to solve this, even if it's demand destruction, a more

difficult time in the economy, and they're going to stay with it and i think they will see it through. and think need to see it through. because that's the lesson of the '70s into the '80s the word stagflation being one that is most painful for most people that's where we are from a macro standpoint, and that's why you're not going to see them blink here for a while >> one of the things we always talk about, if we worried about staying at zero for so long is that when there is a slowdown we don't have any powder. we got used to the zero interest rate and negative interest rate around the world i don't think we need volcker-like rates to clamp down on demand. what's the new high interest, what's the new interest rate that will cause, that would paek affect what powell needs it's not 21%

you could do that at 5% or 6%, can't you? >> i don't think he's going to need to do that. he will continue aggressively on the short end. we'll watch the longer end of the curve for its interpretation of how soon and whether that tip it is tips it into a recession there are some things that he ton doesn't entirely control he can hurt the demand side by unemployment going up and people sadly being unable to affect gasoline and energy. food prices, again, not a great connection between interest rates and food prices. the de-globalization trend, there's a hot lot around the wod coming back to natural boundaries supply chains remain choppy.

boeing said through 2023 supply chains would be challenging. so there's other factors routsid his control. over time they go away i'm a medium-term optimist on technology drive prices down and moving standards of living forward. but in the near term, he's actually saying this it's a blunt instrument. there's only so much in his control. having said that, i agree with you. we're not going to see prices anywhere near where they were at in the past. >> we are seeing some demand destruction already from the high prices, okay. i'm trying to look at a, i don't know if it's silver lining but a

more positive scenario the wealth effect of the stock market, the nasdaq down 35%. so these things have already done some of the fed's work. we already had a negative gdp print for one quarter. could we get another negative print right now, already be in a recession and already be at a point where the fed can stop earlier than people think in what's going on with oil we've seen some rates are down is it already happening? >> you know, i think it's starting to slow i would be surprised if given where employment is and where the consumer is, so you go through an airport in this country or try to book a trip, the consumer is still in a good spot coming out of all the stimulus, including on the -- >> is that good or bad, greg in that means it's not going to slow on its own. >> what i'm saying is that i don't see a near-term, i don't thinkwe're in a recession yet because of that. on the inflation side, it's

harder that's why he's going at it aggressively he really wants to break the back of some of that i does he doesn't want to. he's in the position of having no choice. to go after demand and curb some of the, you know, the fact that the consumer, and even corporations, balance sheets are in good shape. so he's got to pull it all in now. >> but you don't, on the horizon see anything similar to what you had the last time, cut and run while the getting was still good you don'ty anyth see anything la happening. >> the financial sector is in tremendous shape, bank balance sheets the capital creation machine in this country private equity firms the american machine around

capital raising and building new companies and technology moving forward, all that is still in tact and i think will be after this difficult period. which is why medium term we remain quite optimistic. >> okay. thank you. you got different letters. greg fleming see you later. thank you. >> so greg was talking about how people are traveling it's because consumers are in a really good place. and that might be the case unless you had plans to take a flight on united out of newark

they are planning to cut 50 daily departures from its newark hub to address congestion. united waiver request to cut those flights cited construction and staffing that waiver was approved earlier this month if were you planning on frying out of newark on united in early july like i was, be on the lookout. let's see what happens apparently, they say this is not affecting their other hubs, this was a newark issue this is already one of the busiest hubs it was causing problems throughout the rest of the country, too again, these are probably for flights that were already sold, and we'll see what happens >> again, th this goes back to

what should have been done >> it is true that we've seen problems with air traffic control, that you've seen problems even with the lines for security, for tsa to get through. i don't fknow about the construction but it's interesting that they can't cut these flights until they get a waiver from the government does that mean they should be selling those flights up until the point they get the waiver in. waiver >> i think that's why they have to get the waiver. the question is should the government be giving the waiver. what kind of benefitts you get. >> clearly the algorithm is not working at this point. there are new factors that they have not taken into account.

>> i was just in europe. and our flight was delayed delayed by literally less than an hour and a half every passenger was give and $30, i think it was 22 or $23 eurocredit $30 credit for an hour and a half delay that was part of the rules in europe if your frighlight was canceled believe they're on the hook. >> that makes them more careful about how think plan these things >> the government lashas put ru in place we're seeing what happens in the u united states when the airlines don't have their act together. >> this follows on our conversation yesterday with americans and the problems they've had with cancellations

that have been with just about avenue carrier every carrier. >> it is every carrier the construction at newark is not new. that has been there and a source of frustration for people who fly in or out of newark. i've heard this from many travelers. you've got that going on in addition, you have the faa staffing, the air traffic control center ms.s in that area the bottom line is this. you will see this continue for several months as carriers like united are saying we have got to do more than what we're doing right now. united is not leaving any markets. these cut backs are the frequency of flights from domestic destinations into and out of newark. i understand your concern, becky, given the fact that you have a flight out of newark. they'll have to rework these

schedules as much as possible. and i know that's goingto be a inconvenience that some people are going to look at it and say hey, i wanted to leave at exactly 10:00 a.m. on this date on july 8th. >> if you've got connecting flights, there are ricpple effects. if they got the waiver last month, does that mean they would have already told people if they knew last month that they had the waiver, are they going to pull people or is this the news that's about to come for 12%. >> this is the news that's about to come. >> why because it took them that long to figure out which flights they were canceling >> you know, i'll have to get an answer from united, becky. i can't tell you why they applied for the waiver and now they are just telling people the waiver is there so you understand so airlines don't say i'm going to add a flight, i'm going to take down a flight. i don't like a flight this day

the government wants some certainty in terms of the schedules, when they are set that's the issue at hand the air traffic control system needs to have certainty in terms of the schedules laid out by different carriers i don't have an exact answer to your question as to when did they get the word. my guess is a lot of it has to do with how can we rework the destinations in terms of people who are flying to different places starting july 1st >> hey, phil, how profitable will the airlines be in 2022 just on average? >> well, most of them are just swinging to profitability right now, andrew in the dsecond quarter. so when we get these reports in three, four weeks you will see profitability from the airlines. >> if were you to estimate total number, we're talking tens of millions? a billion dollars?

what are we talking about? >> no, for the industry in. industry >> maybe less than a billion dollars for the industry all of these guys are just now swinging to profitability. they're not going to be massively profitable they'll be profitable, whether it's $700 million or close to a billion, very no idea. >> the reason i ask is whether that money can get piled back in to reinvest in the business so we don't have the delays and the cancellations that we're seeing. phil phil, we will be coming back to you with an interview with the ceo of cruise. new hampshire's governor will be with us, talking about ideas for the granite state and president des bin'floating of the gas tax suspension you're watching "squawk box" only on cnbc

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welcome back to "squawk box," i'm phil lebeau with big news last night in the

autonomous vehicle space kr cruise, the subsidiary of general motors giving paid rides in san francisco this is the firsttime in this country anywhere driverless cars give paid rides. tell me about what happened last night. how many rides it you have how did operations go? >> yeah, thanks, phil. this is a big day at cruise and for the industry we had members of the public use their phone, summon a driverless robo taxi. a car pulls up with no one inside it, and they went for a ride, and these were fared rides. w we had a handful of rides. we had a number of five-tstar reviews. they get in the car, they're a little apprehensive. after three or four minutes, they're completely locked in,

having a good time it feels like pure magic, after the ride people reflect on it and say that was actually my space. ly i had the privacy of my own space and we heard from some women saying they felt safer >> these are restricted to i think about a third of san francisco, primarily the northwest part of thecity, between 10:00 p.m. and 6:00 a.m. how quickly do you expand? then it becomes 24/7 and citywide >> yeah, well first you have to understand this is something new. no major city has had driverless cars running around today. there's a lot of aacclimatation. hundreds of vehicles out there serving rides every night, that could happen as soon as the end

of the year. >> it's a limited customer base, am i correct you want to make sure that 10,000 people don't try to hail a car at the same time so you're redistrstricting at lt for now how many people can call one of the cruise vehicles, correct in. correct? >> yeah, you can imagine this feels like a ride at a disney theme park everyone wants to ride our early reactions, like i said, are great. and we have a lot of early users coming back again and again. and that's a success >> let's get to the bottom line. a lot of people are going to wonder how much less expensive is a ride going to be in a cruise driverless vehicle than it would be in a lyft or a uber.

because you're stripping out the cost of the driver what's the fare structure right now? >> yeah, so today you're going to see the fare structure be pretty similar this is a brand-new technology things start out more expensive. but our pricing is going to be about what you'd normally expect and over time we'll drop it. but it's going to reach a point that's far below the human driven it's going to open up the market over time people are going to feel safer and it's going to be more reliable than what's available today. >> the ceo of cruise thank you for getting up early and joining us congratulations onyour first night of operation andrew, this ushers in a whole new era. there are others also applying for this and the age of the robo taxi is

just starting in san francisco you see other companies getting approval for driverless vehicles and you see expand beyond where it is in san francisco >> thank you right now we've got breaking economic news. initial jobless claims from chicago with the numbers, sir? >> yes, we're down 2,000 from a slightly revised 231,000 to 229,000. these have ramped up just a bit. we're under 200,000 up until about the end of june. and things now have changed, i'm sorry. we've been under, we haven't been under 200,000 since nearly the end of april it's something to pay attention to

to it's the notion that maybe this is an early signal for things like jobs are in the rear view mirror particularly, higher than the 1.03 million last week but it's still a very low number the number that disturbs me is neither of those it's the current account balance for the first quarter. minus 291.4 billion. it is by far the biggest negative deficit on the current compounds ever going back to 1960, and of course recession fears aren't only here they're around the globe look at yields here, in the uk, in europe. we're not going to have to worry so much about inflation, it seems as though recession is right on the brink, at least on the minds of investors andrew, back to you. coming up, when we ruretn,

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we're starting to get reaction to president biden's

proposal for a three-upon the gas tax holiday. for more on this, let's welcome new hampshire governor chris sununu he announced an energy relief program. and let's talk first about the gas tax holidays it's something that a lot of republicans have not been in favor of you've been in favor of it >> you'll never find my knocking a tax cut. people say it's just a quarter here and ten cents here. when folks are trying to manage these very high inflationary costs. so every little bit counts, and if the feds can find a way to do it, i'm all for it but at the end of the day, it doesn't address the core problem. this would and two or three-month reprieve but this administration has created a crisis they're unwilling to address the core problem at the end of the day, that's

what we need, long-term relief, not just a short-term reprieve >> we have heard back and forth the administration say things that they would like to see more production in the short term that they would like to see more refining in the short term too you listen to the industry, and they'll tell you, there's not a whole lot more they can do in the refining they're already north of 90% production more than that would be an issue. what you're talking about is not a problem that was created in the last year and a half of this administration it's been a long-term problem through many administrations and through a lot of years the last time a refinery was built in this country was 1977 and there are no quick easy solutions. is this something we're going to have to live with for the foreseeable future >> for the foreseeable future, i think it is. businesses plan long term. when you come in day one and say we're killing the keystone

pipeline, you're telling everyone in that industry, don't plan, don't make long-term investments because we're not going to honor them on the regulatory side. there has to be a transition we all want to get off fossil fuels. but there's got to be a transition it can't be this socialist, hard-stop, all or nothing. at the end of the day, the folks in washington keep going about their business and the families that i'm talking about every day, they're struggling, we're slow rolling ourselves into a recession. when you've inflated 5 trillion into the economy, the only way to fight inflation, this administration is going to tank the economy. they didn't want to deal with anything last year they said inflation was a transitory thing now they're throwing 75 basis points on. but they have to have fundamental policy change and allow families to take those steps with them in terms of that

transition to renewables in the short term i think there's a lot of trouble ahead they don't have a plan to deal with the 5 trillion they stuck here the real crisis, energy costs are high today the heating oil crisis of this winter is unprecedented. we're already planning for it here in new hampshire. using our surplus funds, but this is going to and crisis when an elderly family individual on a fixed income, literally, it's going to cost them $1500 to put oil in that tank come january with no other options. what happens is people go cold they can't afford to put that oil in >> i hear what you're saying about making sure in your state you're going to take care of the people who need it the most, using some of those rainy day funds that you have. i don't think it's something that most republicans would agree with on a national level if you actually tried to give more money back to consumers to

make sure that they could take care of some of these higher costs, the charge would be you're handing out too much money, it's going to create additional inflation and a problem that you won't see demand destruction as a result of high prices, which is how the markets naturally take care of some of these things it's a dilemma maybe there's a different state versus national reaction to these things if the federal government were to try to do what you're doing right now, what would you say to them in. >> the federal government doesn't have surplus funds like states do. let's start right there. right. that way states are the answer >> this is not the dcase in new hampshire, but in some states there is leftover covid money they didn't spend. >> states aren't going to be sending their covid money back, they should be investing it in their citizens not creating bigger government and all that build back better

nonsense that they tried to do at the federal level and push down to states we're not doing any of that. we have to invest in our citizen. it is a manational crisis. there's a recession coming and anyone who tells you different doesn't know anything about recession 101. all this 5 trillion, infrastructure, bridges, buildings, you're going to be okay you're going to have high-paying jobs and sustain through those inflationary pressures if are you not one of those to get that kind of relief, the low and middle class, you are going to face inflationary pressures worse than anybody that's where states have to step up energy, heating oil, putting fuel in the car to get to their job. >> governor earlier this morning we had a representative of the

biden administration on and kind of push back on the idea that look, you all have this entire situation where you want us to make this energy transition. it's not easy to do. his his response back to us was this is not the administration setting these things, this is the industry itself. he pointed to car makers who said that by 2030 at least half of their fleets are going to be all ev other car makers have said it will be 100% by then is this a case of industry leading or the government setting those regulations and telling industry what to do? >> no, look, when you let markets do what they do, that's the right solution but the government clearly got involved again again, it was day one. the guy signed executive orders saying we're shutting off pipelines. and no additional exploration. they can try to walk it back all

they want. at the end of the day, hathis i why america is frustrated. this is why there's going to be a political reckoning come november you are you have an administration that won't let us mine and get our own materials. let's put america first and allow those jobs to happen right here. >> before you go, it's been the headline of the last couple days if not longer. airlines across the country scaling back their schedules, canceling flights like crazy i'm curious what you think hud be done about that >> look, we have a workforce problem everywhere, whether it's in airlines, restaurants, there there's a workplace problem. we have less kids later in life. a generational problem that is not going away anytime soon. you're going to see the elderly,

retirees come back to the market, you are going to have other folks specifically as it relates to airlines. i think we have to be much more aggressive about creating opportunities, not asking someone to pay thousand s of dollars for their pilots license. stay tuned, you're watching "squawk box" live on cnbc from the nasdaq market site in times square girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast.

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let's get down to the morning stock exchange we talked about it before. and i don't f know whether it ws the final capitulation if it as just, is it this rebound built on balsa wood? are we going to retest the lows again? >> no. we didn't go, i thought yesterday was an inside day where you literally open down and then went up you know, we haven't had a lot of those days. in yeah. >> i thought it was a significant day. not that we can't have a bull market within a bear market.

they just hate it. and i thought it was real interesting that very smart guy came on sara's show last night he's talking about liking, he likes amazon remember that? >> yeah. >> if was rob reiner why is sara interviewing rob rinhine reiner. >> i put him at rob reiner, too. he watches the show and is delightful. >> yeah. meat head. a slow, steady sickening slide we've seen you never get to 40 on the vix, still make a lasting bottom ever possible, jim goes against conventional thinking >> no. we do need a lot more hedge fund that's a problem need more hedge funds giving up and shorting we had them, kind of blown up. got to come back they've got to believe they can keep shorting and making money until they come back we're still

on hold here. >> god knows day trading community and the, you know, the stimulus check guys that were in the meme stocks. i mean, everybody's just gone. and so many of those stocks are down 70, 80, 90% i don't know if you need the whole market there do we knneed 3,000 on the s&p? >> i think ultimately so many people expect that, that we don't get there. but i mean, yesterday we had revlon up. revlon has a terrible balance sheet. not at all like hertz. revlon went up that's the meme guys they're alive and well i mean, not that we have to go there and, like, bash them and wipe them out, but as long as the meme guys are there. as long as bitcoin holds 20,000, it's going to be hard for the bulls to win. >> gme system $130 stock. >> and jpmorgan, if you have a

currency, one of these things comes down he's goal to buy every one of them. hope he has money. think market depends on him. more important than wilson any of those guys. >> toing continued in eight e nus. seyou, jim "squawk box" will be right back. r of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world.

welcome back to "squawk box. uber ceo denying the story that

the company looked at sells its ride sharing business in india pap report on bloomberg earlier this morning a tweet posted out of character for him in terms of going after an article like this. it means smk he said "amazing they ran this story. there is zero truth to this story. it wasn't explored wasn't considered. discussions didn't happen at any level, and we told bloomberg as such total clickbait, or sub-bait in this case. so -- >> strong denial normally you hear from a company, you know -- >> decline to comment. >> won't take issue with this. such a never happened. nothing about it was true. you almost never see this blunt of a force follow denial coming directly from the ceo. >> and sub-bait is -- >> it's like trolling.

like a sub-tweet >> clickbait >> what would sub-bait be? >> media >> a whole other topic meantime, before we sign off from the broadcast, talk a little tech. adam, founder of gravity capital management advisers on assets of roughly $8 billion also author of "where the money is: value investing in the digital age. here we are. where is the money where is the money supposed toing in this digital age, and, ian what has to be considered a winter of sorts not just for crypto but for the digital universe. >> yeah. good morning, andrew and, look, the money is where it's always been in the sense it's always been in superior businesses. you know peter lynch said a generation ago, in the end superior businesses win and those victories will be reflected in the marketplace. it's just that in the early 21st

century, most of those moded businesses to use buffett phrases, are in tech. >> so who's got the most >> well, i mean, a couple that we really like right now are amazon, which i was surprised to hear likes and is down 40% year to date. no one's going to catch it in ecommerce. about a 50% emarket share of ecommerce. walmart tanked margin as few years ago to get into ecommerce. they have 7% market share. >> were you on the up side or down side? yield market timing is not great business to be in. a stock down 40% do you say to yourself, this is a stock going down another 10% 20 20%? a stock that can go up 30% what's the time horizon on both ends look like to you? >> hard to pick the bottom as you know, value investors are

used to going into the stocks that are falling, and always stocks over shoot what we think is their cheapest value. you've got to be realistic on the other hand, when you think amazon can grow and ecommerce and in cloud 15%, 20% per year for 15, 20 years. the internal rate of return over three, five, ten years is pretty enormous they've had a little setback with postpandemic, but i think everyone agrees they're -- you know, an inevitable stock the next 15, 20 years. >> what else is onor list? >> we love alphabet. so simple people forget about it it has 95% share market search online search, it's -- you know, amazon tried to build search couldn't bing tried to do it. microsoft spent $15 billion, couldn't do it cloud, android, even maim waymo

trading 10 times, 202, 1 times earnings even in recession trading 5% free cash flow entry yield is a wonderful place to start for a value investor. >> talking in the morning living in the meta verse and the interview mark zuckerberg gave to jim cramer last night you like meta? >> i don't like meta never liked meta, and sort of illustrates what i've talked about in the book which is, you know, tech is where the money is long term, but most tech companies are going to suffer the same fate that all companies in any industry will suffer which is immediatemediocrity unless you have a mode, an edge, your business advantage will be competed away. you see that with meta you saw that, you know, zuckerberg bought two of his rivals instagram and, whatsapp. then couldn't buy tiktok, you know, when the pivot happened. so meta in my book, and it's a

fine company and jim cramer might be right on the metaverse but when you change your name, even pivot, it's not usual ly a good sign. >> thank you do this in metaverse or in-person soon >> yeah. hear it's great. >> see you soon. ride the book. join us tomorrow "squawk on the street" starts right now. good thursday morning. welcome to "squawk on the street." i'm david faber with jim cramer. carl has the morning off a look at futures as we get ready to start trading 30 minutes from now right here at the new york stock exchange. seems to me to say a good open. >> much better than before. >> yesterday a turnaround. then in part perhaps where our road map starts with what else recession risks. fed chair powell says it's a possibility and that a soft landing is "very cha